Does Pepperstone allow scalping?
Choosing a broker to work with can be an arduous task. This is because there is a wide array of brokers on the market, each of which has its own set of rules, features, and restrictions. For instance, Pepperstone is a relatively popular broker that is used by people from all walks of life. Although scalping is commonly offered on various platforms, it is not a given. Fortunately, Pepperstone does allow scalping. The following is a closer look at Pepperstone’s policies on scalping.
What are the trading restrictions on Pepperstone?
Pepperstone is considered one of the top trading platforms for scalping because using a Pepperstone Razor account makes for an excellent level of liquidity. Working with the Pepperstone platform provides access to quick speeds of approximately 0.35ms on average. Moreover, Pepperstone’s leverage can go up to 1:500, depending on the country of residence.
Additionally, the platform provides access to MetaTrader 4, MetaTrader 5, and cTrader platforms. It also offers an active trader program that provides access to better trading fees for high-volume traders. This means it not only makes scalping more accessible to the average user, but it is also a platform that is designed to allow its investors to make trades and execute an array of scalping strategies with ease.
Pepperstone execution speed, fees, and spreads
In terms of time frames, Pepperstone has an average hold time across instruments of around 15- or 30-minute charts. However, some will go down to 5 minutes or even lower. Pepperstone doesn’t charge commissions on trades that are made on their Standard account. However, there's a 1 pip markup on the raw spreads.
Pepperstone Fees and Spread ExplainedHere is a breakdown of Pepperstone’s commission policies:
| USD | USD 0.04 (USD 0.08 round turn) | USD 3.50 (USD 7 round turn) |
| EUR | EUR 0.03 (EUR 0.06 round turn) | EUR 2.60 (EUR 5.20 round turn) |
| GBP | GBP 0.02 (GBP 0.05 round turn) | GBP 2.25 (GBP 4.50 round turn) |
| CHF | CHF 0.03 (CHF 0.06 round turn) | CHF 3.30 (CHF 6.60 round turn) |
| AUD | AUD 0.04 (AUD 0.08 round turn) | AUD 3.50 (AUD 7 round turn) |
| JPY | JPY 3 (JPY 6 round turn) | JPY 303 (JPY 607 round turn) |
| NZD | NZD 0.04 (NZD 0.09 round turn) | NZD 4.75 (NZD 9.50 round turn) |
| SGD | SGD 0.05 (SGD 0.1 round turn) | SGD 4.55 (SGD 9.10 round turn) |
| HKD | HKD 0.28 (HKD 0.56 round turn) | HKD 28.17 (HKD 56.34 round turn) |
| CAD | CAD 0.04 (CAD 0.8 round turn) | CAD 3.5 (CAD 7 round turn) |
Comparison of scalping conditions at Pepperstone and its competitors
| IC Markets | Tickmill | Pepperstone | |
|---|---|---|---|
| Average commission | $3.50 commission per lot per trade plus spread cost | $2.00 commission per lot per trade plus spread cost. 0.2 pips is the average spread cost during peak trading hours. | $3.50 commission per lot per trade plus spread cost. The average speed cost is 0.8 pips during peak trading hours. MT4/MT5 For Razor accounts: $3.50 commission per lot per trade plus spread cost. The average cost during peak trading hours is 0.43 pips. |
| EURUSD average spread | 0.1 Pips | 0.51 Pips | 0.09 pips |
FAQ
Does scalping lead to a higher volume of trades?
Scalping is highly associated with a higher frequency of trading as traders can execute transactions multiple times per day. This makes scalping a low-margin, high-volume sector.
How is the risk-to-reward trade-off determined when scalping?
Just as with the win ratio, the risk-to-reward trade-off when scalping is determined by strategy.
Which type of account allows for raw spreads from 0.0 pips on Pepperstone?
Pepperstone’s razor account is the perfect vehicle for scalpers to use as it offers access to raw spreads from 0.0 pips with a commission charge applied. This allows scalpers with a high frequency of trades to move in and out of positions at a lower cost.
How does liquidity factor into the scalping process?
Liquidity is a key factor in scalping because it allows traders to get in and out of a position at a quoted price with ease. Moreover, it works without having to be filled at worse prices down the line.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.